Latest news with #NAIF
West Australian
08-08-2025
- Business
- West Australian
Bailout bonanza as Federal Government unleashes industrial-scale cash splash for big business
Anthony Albanese has been warned bailouts and public ownership of failing companies will derail his Government's productivity agenda and wind the economic clock back decades. The Federal Government's industrial largesse shifted into overdrive this week with a $135 million cash splash for struggling lead and zinc refiner Nyrstar, backed by South Australia and Tasmania. Just days later there were reports more metal-makers had their hands out for money and were in talks with Industry Minister Tim Ayres in Sydney mulling plans for the Commonwealth to take ownership stakes. It signals a looming showdown between Treasurer Jim Chalmers' hopes to improve productivity at the upcoming economic reform summit against the Prime Minister's Future Made in Australia manufacturing scheme. Top AMP economist Shane Oliver warned the bailout plans might leave taxpayers on the hook for decades, taking funds away from debt repayment and community services. 'Government doesn't have an endless pocket,' he said. He said putting money into struggling industries would take workers and capital away from stronger sectors, weighing on living standards. That's at a time when unemployment is low and businesses face staff shortages. 'They (bailouts) are a handbrake on productivity,' Dr Oliver told The Nightly. 'If we want to grow our living standards . . . we need to (lift) productivity.' Improving productivity means getting more value using less resources, and has been the biggest long-term driver of higher average incomes. Dr Oliver — who has been an economist more than four decades — pointed to the big reforms of the 1980's and 1990's which freed up the economy, increased competition and unlocked better wages. The bailouts would 'start to add up' over time, he said. 'Before you know it we're nationalising the country again,' he said. 'We seem to have forgotten all those lessons (from past decades), we're repeating the same mistakes. 'It does seem like we're turning the clock back a little bit.' Dr Oliver — who still drives a Holden — admitted he was disappointed when Australia's auto industry was shuttered in the 2010s. 'I love Holden. But that's my heart talking,' he said. 'If you want to support local industry, you've got to buy it.' This year alone has seen close to $2.7 billion of taxpayer cash pledged to prop up failing companies. The Federal Government bought $50m of Rex Airlines debt — and was believed to pay full price — in January. About $2.4b was committed to the Whyalla steelworks. Yet failed loans by the taxpayer-funded Northern Australian Infrastructure Facility will add to worries that bureaucrats are not well placed to pick winners. Almost $170m was burned by NAIF when mineral sands miner Strandline Resources hit the wall earlier this year. The fund — created by the Abbott Coalition Government — dusted $80m at potash play Kalium Lakes and had a near miss when Australian Potash collapsed. NAIF had approved a loan for the potash hopeful but not released any cash. That did not stop another public authority, the National Reconstruction Fund, snapping up $50m in a Liontown Resources raising this week. Alarm bells have been ringing at the Productivity Commission about this trend for years. 'While well-designed industry policy can offer benefits, when poorly designed it can be costly for governments, act as a form of trade protection and distort the allocation of Australia's resources,' Commissioner Catherine de Fontenay said last month. A spokeswoman for Senator Ayres defended bankrolling Nyrstar, which will help fund new critical minerals processing. 'This investment reflects three governments engaging constructively with Nyrstar on a serious assessment of the viability of critical minerals processing in Australia,' she said. 'Sustainable and competitive smelting capabilities in Australia that can deliver critical minerals projects are part of the Albanese Labor Government's Future Made in Australia agenda.' The industry talks on Thursday had been constructive, she said. 'The conversation extended beyond individual facility challenges to focus on collaborative, nationwide solutions aimed at ensuring the long-term sustainability of the sector.'
Yahoo
17-06-2025
- Business
- Yahoo
Element 25 receives $32.5m from NAIF to expand Australian manganese project
Australian miner Element 25 has secured a senior debt finance facility of up to A$50m ($32.5m) from the Northern Australia Infrastructure Facility (NAIF), a Commonwealth Government financier, to expand its 100%-owned Butcherbird manganese project in Western Australia (WA). The finance includes A$42.5m in senior debt and a A$7.5m cost overrun facility. It will boost Butcherbird's production capacity to 1.1 million tonnes per annum of manganese oxide concentrate. The expansion will facilitate the supply of feedstock to Element 25's planned high-purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, US, and fulfil concentrate sales to other customers. A feasibility study updated in January 2025 projected the expansion's capital cost at A$64.8m, forecasting a pre-tax net present value of A$561m and a 96% pre-tax internal rate of return. The study anticipates an average annual cash flow of A$70.5m over a mine life exceeding 18 years. The NAIF financing follows a $166m grant from the US Department of Energy for the processing facility construction in Louisiana and $115m from offtake partners General Motors and Stellantis. Element 25 stated that its processing technology for producing HPMSM for lithium-ion batteries leads to low energy consumption and minimal waste. Element 25 managing director Justin Brown said: 'Securing this support from the Federal Government's Northern Australia Infrastructure Facility reaffirms the government's commitment to developing Australia's critical minerals sector and Butcherbird's economic importance to Australia and the Pilbara region of WA. 'Our feasibility studies have confirmed Butcherbird's pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource, which is integral to our plans for HPMSM in the USA as well as potentially other locations around the world. This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.' Element 25 has secured all necessary approvals for the Butcherbird expansion, including final statutory approval from the WA Department of Water and Environmental Regulation in March 2025, and other approvals from the WA Department of Energy, Mines, Industry Regulation and Safety in January. Further, Element 25 is finalising the balance of required finance for the project through various financing groups, equity providers and key commercial contracts. The Butcherbird manganese expansion project team is following a detailed execution plan to deliver the project by 2026, stated the company. "Element 25 receives $32.5m from NAIF to expand Australian manganese project" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
West Australian
17-06-2025
- Business
- West Australian
The NAIF chequebook with a chequered history whipped out again for a $50m loan to Element 25
The Northern Australia Infrastructure Facility has dusted itself off and found a new WA mining venture to invest in less than four months on from a collapse that could cost taxpayers more than $140 million. NAIF has earmarked a low-interest loan of up to $50m for the expansion of Element 25's Butcherbird manganese mine in the Pilbara. E25 wants more manganese concentrate to feed into its planned high purity manganese sulphate monohydrate (HPMSM) processing facility in the US state of Louisiana. The HPMSM facility secured a $US166m grant funding from the US Department of Energy in September. Shares in E25 were up nearly 13 per cent on news of the NAIF funding. 'Securing this support from the Federal Government's Northern Australia Infrastructure Facility reaffirms the Government's commitment to developing Australia's critical minerals sector and Butcherbird's economic importance to Australia and the Pilbara region of WA,' E25 managing director Justin Brown said. 'Our feasibility studies have confirmed Butcherbird's pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource, which is integral to our plans for HPMSM in the US as well as potentially other locations around the world. 'This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.' Mr Brown said rechargeable batteries could use as much as 10 times more manganese if battery chemistry shifts towards lithium manganese rich chemistries. Car manufacturers have shown an interest in such chemistries. NAIF's investment in E25 comes less than four months after local mineral sands miner Strandline Resources fell into administration. The shares of ASX-listed Strandline, which counts the Coburn heavy mineral sands project near Shark Bay as its key asset, were in suspension for more than a year before its collapse. The West Australian revealed in January that the NAIF would likely take a haircut on its debts as Strandline's single biggest financier. Administrators are currently trying to sell the fallen business. NAIF was originally set up to back infrastructure projects in remote regions across WA, Queensland and the Northern Territory, particularly in areas with high Aboriginal populations. But a dearth of those types of projects led NAIF to broaden its scope to include more mining developments, which has caused some notable dramas. Potash producer Kalium Lakes went bankrupt in August 2023 after NAIF had loaned more than $80m. NAIF had also pledged to give $140m to Australia Potash, which like Kalium went under, but this loan did not proceed before the miner collapsed.
Yahoo
17-06-2025
- Automotive
- Yahoo
Australia's Element 25 secures $32.6 million in government debt to build out manganese mine
(Reuters) -Australian manganese producer Element 25 said on Tuesday the Northern Australia Infrastructure Facility (NAIF) has agreed to provide a senior debt facility of up to A$50 million ($32.57 million) for the firm's Western Australia project. Shares of the producer jumped as much as 10.3% to A$0.215 in early trade. The funding comes as manganese is set for growing demand from the electric vehicle industry. General Motors and battery partner LG Energy Solution said last month they are planning to start commercial production of lithium manganese-rich (LMR) battery chemistry at a U.S. facility starting in 2028. GM said the chemistry is lower cost than the nickel-rich cells used today, but will still give customers the range they want in future electric trucks and full-size SUVs. NAIF will provide the funding for the company's Butcherbird Manganese Expansion Project located in the Pilbara region, while Element 25 continues to explore additional funding through other sources including offtake prepayment. The facility will support the miner's plans to expand Butcherbird's production capacity to 1.1 million tonnes per annum of manganese oxide concentrate. This will further enable the project to supply manganese concentrate feedstock for Element 25's planned battery grade, high purity manganese sulphate monohydrate processing (HPMSM) facility, which it plans to build in Louisiana, in the United States. "Our feasibility studies have confirmed Butcherbird's pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource, which is integral to our plans for HPMSM in the USA as well as potentially other locations around the world," said Element 25's managing director Justin Brown. Element 25 is also considering other geographies, including Tokyo, to build processing hubs for the critical mineral that is set for growing demand from the electric vehicle sector, Brown added. The firm said it is also in discussions with a number of potential financiers for the balance of the required project finance. ($1 = 1.5352 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
